scholarly journals Competitive Conditions in Global Value Chain Networks: An Assessment Using Entropy and Network Analysis

Entropy ◽  
2020 ◽  
Vol 22 (10) ◽  
pp. 1068 ◽  
Author(s):  
Georgios Angelidis ◽  
Evangelos Ioannidis ◽  
Georgios Makris ◽  
Ioannis Antoniou ◽  
Nikos Varsakelis
Keyword(s):  
Value Chain ◽  
Value Added ◽  
Value Chains ◽  
Global Value Chain ◽  
Degree Centrality ◽  
Sector Structure ◽  
Input Output ◽  
Weighted Degree ◽  
The World ◽  
Weighted Degree Centrality

We investigated competitive conditions in global value chains (GVCs) for a period of fifteen years (2000–2014), focusing on sector structure, countries’ dominance and diversification. For this purpose, we used data from the World Input–Output Database (WIOD) and examined GVCs as weighted directed networks, where countries are the nodes and value added flows are the edges. We compared the in-and out-weighted degree centralization of the sectoral GVC networks in order to detect the most centralized, on the import or export side, respectively (oligopsonies and oligopolies). Moreover, we examined the in- and out-weighted degree centrality and the in- and out-weight entropy in order to determine whether dominant countries are also diversified. The empirical results reveal that diversification (entropy) and dominance (degree) are not correlated. Dominant countries (rich) become more dominant (richer). Diversification is not conditioned by competitiveness.

scholarly journals The Global Value Chain and the Competitiveness of  Asian Countries

2017 ◽  
Vol 16 (3) ◽  
pp. 257-281 ◽  
Author(s):  
Kozo Kiyota ◽  
Keita Oikawa ◽  
Katsuhiro Yoshioka
Keyword(s):  
South Korea ◽  
Value Chain ◽  
Value Added ◽  
Real Income ◽  
European Countries ◽  
Global Value Chain ◽  
Input Output ◽  
Asian Countries ◽  
Job Opportunities ◽  
The World

This paper examines the competitiveness of industries in six Asian countries—China, India, Indonesia, Japan, South Korea, and Taiwan—using the World Input–Output Database tables from 1995 to 2011. Competitiveness is measured by the value-added that industries contribute to the production of final goods, which we refer to as global value chain (GVC) income, rather than by gross exports. We find that, unlike EU countries, Asian countries have generally been able to combine increasing GVC job opportunities with a rise in real income. The GVC income in Asian countries presents a different picture to that in European countries.

scholarly journals Global Value Chains of COVID-19 Materials: A Weighted Directed Network Analysis

Mathematics ◽  
2021 ◽  
Vol 9 (24) ◽  
pp. 3202
Author(s):  
Georgios Angelidis ◽  
Charalambos Bratsas ◽  
Georgios Makris ◽  
Evangelos Ioannidis ◽  
Nikos C. Varsakelis ◽  
...  
Keyword(s):  
Value Chain ◽  
Trade Flow ◽  
Value Added ◽  
Value Chains ◽  
Directed Network ◽  
Protective Equipment ◽  
Global Value Chain ◽  
A Value ◽  
The World ◽  
The Usa

The COVID-19 pandemic caused a boom in demand for personal protective equipment, or so-called “COVID-19 goods”, around the world. We investigate three key sectoral global value chain networks, namely, “chemicals”, “rubber and plastics”, and “textiles”, involved in the production of these goods. First, we identify the countries that export a higher value added share than import, resulting in a “value added surplus”. Then, we assess their value added flow diversification using entropy. Finally, we analyze their egonets in order to identify their key affiliates. The relevant networks were constructed from the World Input-Output Database. The empirical results reveal that the USA had the highest surplus in “chemicals”, Japan in “rubber and plastics”, and China in “textiles”. Concerning value added flows, the USA was highly diversified in “chemicals”, Germany in “rubber and plastics”, and Italy in “textiles”. From the analysis of egonets, we found that the USA was the key supplier in all sectoral networks under consideration. Our work provides meaningful conclusions about trade outperformance due to the fact of surplus, trade flow robustness due to the fact of diversification, and trade partnerships due to the egonets analysis.

Measuring economies’ pivotability on the global value chain under the perspective of inter-country input–output network

2021 ◽  
pp. 2150289
Author(s):  
Lizhi Xing ◽  
Yu Han ◽  
Dawei Wang
Keyword(s):  
Value Chain ◽  
Betweenness Centrality ◽  
Value Added ◽  
The United States ◽  
Global Value Chain ◽  
Input Output ◽  
Trade Disputes ◽  
Industrial Sectors ◽  
Edge Based ◽  
Novel Coronavirus

Under the dual background of trade disputes between China and the United States and the epidemic of 2019 novel coronavirus, the existing Global Value Chain (GVC) division and trading system are facing unprecedented impact. This paper reinforces the present studies on international trade by analyzing the fragments of GVC, which are made of numerous Inter-Country Input–Output (ICIO) relations. We first redefine the inter-country and inter-sector propagating process of intermediate goods, coming up with the concept of Strongest Relevance Path Length (SRPL) based on Revised Floyd–Warshall Algorithm (RFWA). Second, enlightened by betweenness centrality, we introduce Weighted Betweenness Centrality of Edge based on RFWA to measure the Value-Added Pivotability of Input–Output Relations, which brings forth pivotability at domestic, international, and global levels. The results show how much a given country can influence the world economic pattern by linking worldwide upstream and downstream industrial sectors, be it at home or abroad. Also, we can try to explain what is the cause of the phenomenon that the economic influence of nations is trading off and taking turns with all sorts of local or even global evens happening.

scholarly journals Chemical industry and value-added trade – A comparative study on Hungary and Poland

2019 ◽  
Vol 69 (1) ◽  
pp. 81-99 ◽  
Author(s):  
Pawel Folfas ◽  
Beáta Udvari
Keyword(s):  
Economic Policy ◽  
World Economy ◽  
New Products ◽  
Value Added ◽  
Value Chains ◽  
Production Networks ◽  
Input Output ◽  
Global Production Networks ◽  
The World ◽  
Chemical Products

Nowadays, global production networks (GPN) and global value chains (GVC) play an important role in the world economy intensifying the trade and production networks and resulting in products having value-added in different countries. The analysis of how many intermediate products a country imports in order to produce a product and of how many products a country exports to another country in order to produce new products draws the attention to value-added trade. In the present study, we compare the Hungarian and Polish value-added trade of chemicals and chemical products. We use the OECD-WTO data of value-added trade, which is based on an input-output table. By calculating numerous indices, we reveal that the domestic value-added of chemicals and chemical products in the two countries was relatively low and should be increased by adequate economic policy.

A value-added analysis of trade in Taiwan and Korea’s ICT industries

2016 ◽  
Vol 20 (1) ◽  
pp. 47-73
Author(s):  
Hsing-Chun Lin ◽  
Shih-Hsun Hsu ◽  
Ruey-Wan Liou ◽  
Ching-Cheng Chang
Keyword(s):  
Value Added ◽  
Information And Communications Technology ◽  
Value Chains ◽  
Input Output ◽  
Content Type ◽  
Cost Structures ◽  
A Value ◽  
The World ◽  
Ict Industry ◽  
Trade In Value Added

Purpose – The purpose of this paper is to extricate value-added exports in information and communications technology (ICT) industry earned by Taiwan and Korea. Additionally, the authors decompose Taiwan and Korea’s gross exports into various meaningful components. Design/methodology/approach – The authors use the inter-country input-output (ICIO) table which endows with cost structures of industries as well as trade information, facilitating in keeping track of the flow of products and value-added. The ICIO table used in this paper comes from the World Input-Output Database. The authors also use the way Wang et al. (2013) decomposed the intermediate goods exports into various components to provide further insights. Findings – The empirical results indicate that Taiwan and Korea’s ICT export to the world shrink by 47.8 and 40.9 percent when the trades are measured in value-added terms. Taiwan and Korea’s ICT export will also decrease by 75.1 and 57.8 percent. From the viewpoint of value added in trade, the share of value added embodied in Taiwan and Korea’s gross ICT exports continued to decrease and reached 24.9 and 42.2 percent in 2011, while the components of pure double counted terms kept growing in recent years. Originality/value – With global value chains flourishing in recent years, conventional trade statistics not only fails to highlight the vertical specialization among different countries, but also distorts the measurement of a country’s competitiveness. This paper extricates value-added exports in ICT industry earned by Taiwan and Korea and bring into focus the importance of trade in value added.

scholarly journals PERAN INDONESIA DALAM RANTAI NILAI GLOBAL PRODUK ELEKTRONIK

2018 ◽  
Vol 4 (1) ◽  
pp. 49-70
Author(s):  
Rizki Putri Nurdiati ◽  
Rina Oktaviani ◽  
Sahara Sahara
Keyword(s):  
Economic Growth ◽  
Value Chain ◽  
Value Added ◽  
Global Value Chain ◽  
Global Integration ◽  
Input Output ◽  
Electronic Industry ◽  
Output Analysis ◽  
Input Output Analysis ◽  
Manufacture Sector

Globalization has transformed the structure of industry into global integration of socalled global value chains (GVCs). Some literatures suggest that electronic industry is known as a successful industry in establishing global value chain. Electronic industry is one of leading cluster in driving economic growth in Indonesia. This study aimed to analyze the role of Indonesia in electronic global value chain according to its share towards global electronic industry, linkages, and value added distribution. An input output analysis by using the Asian International Input Output Table 2005 was employed to analyze the share of each country in electronic global value chain, inter-sector linkages, value added, also output and income multiplier. The result showed that Indonesia had low participation in electronic global value chain. Indonesia’s output share was the lowest among all countries which resulted in low valueadded acquisition. Indonesia played the role as the input user from the various sectors. It is suggested that Indonesia electronic manufacture sector should be integrated with the input supplier sectors. Electronic computing equipment sector can be the main priority in enhancing Indonesia electronic manufacture sector since it has the biggest effect to economic growth. Keywords: electronic, global value chain, Indonesia, input output analysis

Global value chain linkages and domestic value-added content: Empirical evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhushan Praveen Jangam ◽  
Badri Narayan Rath
Keyword(s):  
Value Chain ◽  
Least Squares Method ◽  
Value Added ◽  
Value Chains ◽  
Global Value Chain ◽  
Content Type ◽  
Services Sector ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to examine the relationship between global value chains (GVCs) and domestic value-added content (DVA) in a panel of 58 countries for the period 2005–2015. Design/methodology/approach First, the authors quantify the refined measures of GVC linkages by using the Borin and Mancini (2019) decomposition technique. Second, the authors apply the feasible generalised least squares method to test the relationship between GVCs and DVA empirically. Findings First, the authors find that GVC links are crucial to the enhancement of DVA. Second, a study at the sectoral level reveals that GVC links in the primary sector raise DVA whilst reducing DVA in the services sector. Third, the authors find that only upstream activities enhance value-added content. Fourth, the authors note the augmenting role played by national policies in mediating the gains associated with GVCs. Finally, the authors note that the outcomes associated with GVCs are consistent when the sample of countries is divided into groups based on income. Practical implications The results lead us to urge policymakers to promote greater integration of business activities into GVCs to reap their benefits. Originality/value This paper contributes to the research on the impact of GVCs on DVA by emphasising the significance of the types of GVC activities and policies that improve DVA.

scholarly journals Capitalist crisis in the “age of global value chains”

2021 ◽  
pp. 0308518X2110067
Author(s):  
Jennifer Bair ◽  
Mathew Mahutga ◽  
Marion Werner ◽  
Liam Campling
Keyword(s):  
Value Chain ◽  
Global Value Chains ◽  
Value Chains ◽  
Global Value Chain ◽  
Modernization Theory ◽  
World Development Report ◽  
Neoliberal Globalization ◽  
Academic Literature ◽  
The World ◽  
World Development

In this article, we analyze the strategies, surprises, and sidesteps in the World Bank’s 2020 World Development Report, Trading for Development in the Age of Global Value Chains. Strategically, the Report promotes an expansion of neoliberal globalization couched in the language of global value chains. Curiously detached from the broader academic literature on global value chains in international trade, it promotes a sequentialist vision of global value chain upgrading that evokes the stagism of classic modernization theory. The authors sidestep important issues, such as China's pivotal role in the landscape of global trade, and are largely silent on others, including climate change. Significantly and somewhat surprisingly, given the general endorsement of global value chain integration, the Report acknowledges negative distributional trends associated with the rise of global value chains, including the excessive benefits reaped by “superstar firms” and the now well-documented decline in labor's income share. These observations are not reflected in the document's policy section, however, where the World Development Report largely recapitulates familiar prescriptions, with the threat of nationalist populism and rising protectionism providing a new bottle for this old wine. Drawing on a range of literature including United Nations Conference on Trade and Development's 2018 Trade and Development Report, we highlight not only the limits of the Bank's adherence to an increasingly embattled orthodoxy, but also the necessary starting points for a more useful discussion of the merits, limits, and future of global value chains.

scholarly journals Poverty chains and global capitalism

2018 ◽  
Vol 23 (1) ◽  
pp. 71-97 ◽  
Author(s):  
Benjamin Selwyn
Keyword(s):  
Value Chain ◽  
Firm Value ◽  
Value Added ◽  
Global Value Chains ◽  
Global South ◽  
Value Chains ◽  
Global Value Chain ◽  
Original Material ◽  
Value Chain Analysis ◽  
Secondary Sources

The proliferation of global value chains is portrayed in academic and policy circles as representing new development opportunities for firms and regions in the global south. This article tests these claims by examining original material from non-governmental organizations’ reports and secondary sources on the garment and electronics chains in Cambodia and China, respectively. This empirical evidence suggests that these global value chains generate new forms of worker poverty. Based on these findings, the article proposes the novel Global Poverty Chain approach. The article critiques and reformulates principal concepts associated with the Global Value Chain approach – of value-added, rent and chain governance – and challenges a core assumption prevalent within Global Value Chain analysis: that workers’ low wages are a function of their employment in low productivity industries. Instead, it shows that (1) many supplier firms in the global south are as, or more, productive than their equivalents in the global north; (2) often predominantly female workers in these industries are super exploited (paid wages below their subsistence requirements) and (3) chain governance represents a lead firm value-capturing strategy, which intensifies worker exploitation.

scholarly journals Labor Costs and Localization in Global Value Chains: Comparative Analysis and Conclusions for Poland

2019 ◽  
Vol 11 (1) ◽  
pp. 229-238
Author(s):  
Magdalena Kapela
Keyword(s):  
Value Chain ◽  
Great Part ◽  
Value Added ◽  
Work Force ◽  
Global Value Chains ◽  
Qualitative Assessment ◽  
Value Chains ◽  
Global Value Chain ◽  
Labor Costs ◽  
Technology Industries

AbstractLabor costs in Poland are relatively low in comparison to other European Union (EU) countries. After long period of functioning Poland in closed economy, conditions significantly weakened the level of its competitiveness in the international market. When the boards were opened in 1989, it became clear that cheap work force was one of the most important factors to attract foreign investments. At the same time, globalization and internationalization of production created opportunity for entrepreneurs to establish global value chains. Participation in global value chain (GVC) of Poland can extend international trade and increase gross domestic product (GDP). On the other hand, low wages attract investments in low-technology industries and, moreover, place Poland in the middle of value chains, where semi-products are assembled and new value added is exiguous. The aim of the article is: 1) to present polish participation in global value chain, 2) to analyze how much low labor costs contribute to degree of share in global value chain, and 3) to show how level of labor costs contribute to position in value chain and how does it influence on benefits from participating in GVC. In the article, the quantitative and qualitative assessment of Eurostat (European statistic) and Organisation for Economic Cooperation and Development (OECD) statistics data and research on labor costs carried out in Poland were analyzed. The research tools include a critical analysis of literature and descriptive analytical method. More than 50% of polish exports takes place within the global value chains. Low labor costs attract investors to allocate part of their production in Poland. Nevertheless, great part of export constitutes semi-products that do not create new value added so benefits from participation in GVC are not so considerable as expected. It is desirable to shift Poland toward beginning or the end of value chains, where profits are higher.

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